Joe Biden visits South Korea to Boost Chip Ambitions

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Joe Biden visits South Korea to Boost Chip Ambitions
21 May 2022
4 min read

News Synopsis

US President Joe Biden is on a three-day trip to South Korea to visit a Samsung Electronics' semiconductor factory, emphasizing the connection of technology as the USA is strengthening its supply chain to compete with China and resuming its own manufacturing after competition with China.

The US President said at the plant, “These little chips are the key to propelling us into the next era of technological development.” He further said, “Our two nations work together to make the best, most advanced technology in the world, and this factory is proof of that.”

The president toured the facility with South Korean President Yun Suk-Yeol. This was the first time Biden had met the newly elected leader in person.

Samsung announced last year its plans to establish a $17 billion advanced chip-making facility in Taylor, Texas, adding to its footprint in central Texas where it has long operated a plant in Austin. The White House also claimed that the Pyeongtaek plant will serve as a model for the new Texas factory,

South Korea, along with Japan and Taiwan, holds the key to the United States' efforts to counter China's growing technological capabilities and maintain its superiority in key future technologies, including semiconductors and batteries. Asian allies are also essential in building a more resilient supply chain that has been plagued by shortages during pandemics.

According to the Semiconductor Industry Association, South Korea is home to Samsung and SK Hynix Inc, two world's largest semiconductor makers, and accounts for more than 40% of the world's memory chip manufacturing capacity. According to US trade data, last year's Census Bureau found that more than three-quarters of US semiconductor imports came from Asia.

TWN In-Focus